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Vodafone to create Europe’s largest tower company

Christian Fernsby |
Vodafone Group announces that it is proceeding with plans to monetise a substantial proportion of its European tower infrastructure during the next 18 months, including the previously announced intention to combine Vodafone Italy’s passive tower infrastructure with Inwit.

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Vodafone has decided to legally separate its passive tower assets in order to create a new TowerCo organisation with a dedicated management team, which will be operational by May 2020.

TowerCo will own Europe’s largest tower portfolio, comprising approximately 61,700 towers across 10 countries[1], with 75% of these sites in the major markets of Germany, Italy, Spain and the UK.

Based on market benchmarks for anchor tenant lease rates, existing third party revenues and the attributable cost base, TowerCo could generate proportionate annual revenue and EBITDA of around €1,700 million and €900 million, respectively[2].

TowerCo’s attributable annual maintenance and expansion capex could be up to €200 million.

The ultimate financial profile of TowerCo may vary from these figures, depending on the assets that are included, whether the assets are fully controlled, and the anchor tenant lease rates that Vodafone decides to set.


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